Apple could shock the naysayers

Maddawg,

You wrote “(try using dictionary.com for definitions of words before you put them to use and make yourself look like a complete imbicile…, imbicile)”.

Perhaps you should check the dictionary for the proper spelling of words before you put them to use. The word is spelled “imbecile”.

Thompson

@Maddawg:

Yeah, I’d put my money in Microsoft if I wanted a savings account. Ever since they announced a dividend in 2003 their stock has been relatively stagnant.

Comparing Apple and Microsoft stock is like comparing Google & GE stock. One is a growth stock and one is a value stock.

As long as Windows and Office are Microsoft’s bread and butter, I will never again expect to see large gains from them.

To Maddawg,
Comment on your comment to Frank~Stop being so uncivilised in your approach to making a comment. You do not have to be so abrasive.

hey frank..

are you as blind and illiterate as you seem??

anaemic CANNOT equal 79% profit growth on 4.71 BILLION in revenue as MS posted for last Q.
(try using dictionary.com for definitions of words before you put them to use and make yourself look like a complete imbicile…, imbicile)

MS is virtually guaranteed a sound investment that any analyst or broker will suggest to any of their investors not wanting losses.

just because apple has been overvalued this past year, while at the same time producing their standard single digit results by providing copy cat technology in shiny packages that glaze over the eyes of lamers such as yourself so you can’t see the headlights in front of you, does not mean your money is safe in that upsy-downsy, can’t see where it belongs stock.

MS always has, and i feel safe to bet, always will POUND APPLE INTO SAUCE!!!

Herr Ross:

My point exactly! Wielen Dank!

*** they are a mature company with really sloppy software that is starting to get on people’s nerves…****

HA HA HA. It’s been getting on people’s nerves since the 1980’s. And MSFT has been crying all the way to the back ever since.

Sorry, my last comment was in reply to Frank.

Jon,
The difference is that MSFT has been flat for the last year (and most of the decade) while AAPL had gained 150 % within 1 year and is now still 50 % higher than where it was last year. [1]

[1] http://finance.yahoo.com/q/bc?s=MSFT&t=1y&l=off&z=m&q=l&c=AAPL

As an investor, I am shocked at people completely ignoring Apple’s financial fundamentals and beating down the share price over the last few days. And yet, today’s anemic results from Microsoft boost their price by a couple of bucks??? Man, I have heard of loyalty, but in a capitalist driven investment, shouldn’t money be involved somehow? Microsoft has one direction to go…they are a mature company with really sloppy software that is starting to get on people’s nerves…oh, and that “box” thingy…very “innovative”.

Equally important are the deferred revenues, and the comments on the analysts’ call about the state of the supply chain inventories. When management expresses worry about inventory levels (rather than make statements like they are “below target”, i.e., I’m in good shape,) then you know that the stock market has over-reacted.

Mac lap-top and PC sals were up ~50% YoY and iPhone is the most sucessful launch in phone history. The iPod sales were up “only” 5%, but when everyone has one (120mil+ units sold), it’s got to slow to single digit growth at some point. So after a 15% haircut from the high BEFORE earnings, I think this drop is an incredible overreaction.

Wow, I read more and more folks talking about Apple TV and wonder if they have even tried to use one? I love mine, and if what I hear about renting videos works as planned and they have a large selection with at least all the newest releases I will quit Netflix. AppleTV is the first time, other than my COMCAST DVR, that my whole Family has used a technical device, other than the 5 PC’s in the house, to thier fullest. I just fear that we will spend more on movie rentals, as it seems impossible for anyone in my Family but me to take the long walk to the mailbox to return the netflix movies, Apple is going to rent more movies than blockbuster and netflix combined I predict!

Someone writes “Apple seems adept at paying its suppliers as late as possible…”

E V E R Y O N E, seems adept at paying their vendors and suppliers as late as possible. I have a litany of billion dollar companies that I work with that will sit on the smallest $300 invoice for 60 to 90 days. It ain’t just Apple.

“Apple has stockpiled more than $18 billion in cash”.

That’s a vast overstatement of Apple’s
cash position. If you take into
account the current liabilities
of $10.5B, offset by account
receivables of $1.9B, the
effective cash position is
closer to $9.4B. Apple seems
adept at paying its
suppliers as late as possible
and at making some income on the
float.

From Jon Fortt: As you note, it’s actually not an overstatement of Apple’s cash position. You’ve subtracted things that have nothing to do with cash, while failing to factor in Apple’s non-cash assets. You might want to go back and re-work the math.

Analysts had wild ideas about the Q2 forecast: $ 1.09 per share. When Apple announced $ 0.94 profit forecast per share they all said Apple guided lower and the stock price went down.

Well, I did the math on the Q1 forecasts and results and the Q2 forecasts, both for 2008 and 2007. It turned out Apple hasn’t guided lower at all!

Apple made 7.1 billion in sales for Q1 in 2007 and predicted between 4.8 and 4.9 billion for Q2 2007, that’s 68% of Q1. Profits were 1.14 per share in Q1 2007 and Apple predicted between 0.54 and 0.56 for Q2, that’s 48% of Q1.

Now, for 2008, Apple did 9.6 billion in sales, and predicts 6.8 billion for Q2, that’s 72% of Q1. Profits were 1.76 per share in Q1, predictions are 0.94 in Q2, that’s 53% of Q1.

So Apple predicts an additional rise in sales of 4 percentage points, and an accelerated rise in profits of 5 percentage points, compared to last year. I think that’s good!